Stephen M. Trezza Bankruptcy Law Blog on Lawyers.com

Debt You Will Have to Pay in Chapter 13

Wednesday, February 1, 2012 by Stephen M. Trezza

Photo of Stephen M. Trezza

For many people, Chapter 13 is the best or only option
available for bankruptcy.  If you have
large amount of secure debt, a large income, or would like to keep specific
assets, Chapter 13 may be the choice for you. 
But what do you have to pay in Chapter 13, and can you predict the size
of your payments?



In Chapter 13, you will create a plan to pay back your
creditors a feasible amount every month. 
You have much more control in Chapter 13 over the size of your payments
that you would outside of bankruptcy. 
And once your plan is completed, you will have made a sizeable dent in
your debt obligations, and will have any remaining unsecured debt discharged. 



The following are required payments in Chapter 13:



-         
Administrative Claims – This includes your
bankruptcy filing fees, your trustee’s commission, and your attorney’s
fees.  These will be paid first, before
anything else.



-         
Priority Debt – These will be paid after your
administrative fees are paid, and include alimony, child support, taxes, and
some other things depending on your situation.  



-         
Other Secured Debt – If you would like to keep
the property attached to your secured debt (such as your home or car), you will
need to pay 100% of any defaulted payments. 



-         
Unsecured Debt – Unsecured debt can be paid in
full, or can be not paid, depending on the amount of income that is left after
the above payments are made.



If you are considering Chapter 13 bankruptcy, talk to a
qualified and experienced attorney to learn more about the options that are
available to you.  Every situation is
different, and only a qualified attorney can give you the advice that you need.

Stephen M. Trezza

Phoenix Bankruptcy Attorney

602-254-2100

 
Posted at 17:18 PM
Topic: Bankruptcy
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